TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 1. TEXAS DEPARTMENT OF HUMAN SERVICES

Chapter 20. COST DETERMINATION PROCESS

40 TAC §20.112

The Texas Department of Human Services (DHS) proposes new §20.112, concerning Attendant Compensation Rate Enhancement, in its cost determination process chapter.

The purpose of the new section is to implement DHS's appropriations rider 37 regarding community care programs passed by the 76th legislature. The proposal establishes procedures for providers to obtain additional funds for increased compensation to attendants in select community care programs (Community Based Alternatives Waiver, Community Living Assistance and Support Services, Primary Home Care, Day Activity and Health Services, Deaf-Blind Multiple Disabilities Waiver, and Residential Care). Providers receiving the additional funds must demonstrate compliance with spending the increased funds on attendant compensation. If a participating provider's allowable attendant compensation times 1.07 is less than the revenue accrued, the difference will be recouped by DHS. Providers who choose not to participate will have their total direct care staff rate increase each year limited to adjustments necessitated by increases in the minimum wage. The proposal modifies the cost areas of these programs to separate the new attendant compensation cost area from other cost areas. Changes to the Day Activity and Health Services, Primary Home Care, and Residential Care programs are proposed to combine some of the cost areas.

The department is simultaneously proposing related policy in Chapters 46, 47, and 98, along with the Texas Health and Human Services Commission's Chapter 355, in this issue of the Texas Register .

Eric M. Bost, commissioner, has determined that for the first five-year period the proposed section will be in effect there will be fiscal implications for state government as a result of enforcing or administering the section. The effect on state government for the first five-year period the sections will be in effect is an estimated additional cost of $10,400,000 in fiscal year (FY) 2001; $10,900,000 in FY 2002; $11,500,000 in FY 2003; $12,000,000 in FY 2004; and $12,600,000 in FY 2005. There will be no fiscal implications for local government as a result of enforcing or administering the section.

Mr. Bost also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be a mechanism for increasing compensation to attendants in certain community care programs. There will be no adverse economic effect on large, small, or micro businesses as a result of enforcing or administering the section, because no changes in practice are required of any businesses. The proposal will provide some additional funding for providers who choose to increase the compensation paid to attendants in their programs. There is no anticipated economic cost to persons who are required to comply with the proposed section.

The department will hold a public hearing on the proposal on Monday, April 17, 2000, at 1:30 in the John H. Winters Building Public Hearing Room, first floor, East Tower, 701 West 51st Street, Austin.

For further information, contact local offices of DHS or Carolyn Pratt at (512) 438-4057 in DHS's Rate Analysis Division. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-179, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714- 9030, within 30 days of publication in the Texas Register .

The new section is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The new section implements the Human Resources Code, §§22.001 - 22.030 and §§32.001 - 32.042.

§20.112. Attendant Compensation Rate Enhancement.

(a)

Eligible programs. Providers contracted in the Primary Home Care, including Family Care (PHC/FC); Day Activity and Health Services (DAHS); Residential Care (RC); Community Living Assistance and Support Services (CLASS) - Direct Service Agency; Community Based Alternatives (CBA) - Home and Community Support Services (HCSS); Deaf-Blind Multiple Disabilities Waiver; and CBA - Assisted Living/Residential Care (AL/RC) programs are eligible to participate in the attendant compensation rate enhancement.

(b)

Definition of attendant. An attendant is the unlicensed caregiver providing direct assistance to the clients with Activities of Daily Living (ADL) and Instrumental Activities of Daily Living (IADL). In the case of DAHS, RC, and AL/RC programs, the attendant must perform attendant functions at least 80% of his or her total time worked. Other staff in these settings not providing attendant services at least 80% of their total time worked are not considered attendants. Time studies should be performed for staff that are not full- time attendants to determine if a staff member meets this 80% criteria. Attendants do not include the director, administrator, assistant director, assistant administrator, clerical and secretarial staff, professional staff, other administrative staff, licensed staff, attendant supervisors, cooks and kitchen staff, maintenance and ground keeping staff, and laundry and housekeeping staff. An attendant also includes a driver in the DAHS program.

(c)

Attendant compensation cost center. This cost center will include employee compensation, contract labor costs, and personal vehicle mileage reimbursement for attendants as defined in subsection (b) of this section.

(1)

Attendant compensation is the allowable compensation for attendants defined in §20.103(b)(1) of this title (relating to Compensation of Employees) and required to be reported as either salaries and/or wages, including payroll taxes and workers' compensation, or employee benefits. Benefits required by §20.103(b)(1)(A)(iii) of this title (relating to Specifications for Allowable and Unallowable Costs) to be reported as costs applicable to specific cost report line items, except as noted in paragraph (3) of this subsection, are not to be included in this cost center.

(2)

Contract labor refers to personnel for whom the contracted provider is not responsible for the payment of payroll taxes, such as FICA, Medicare, and federal and state unemployment insurance, and who perform tasks routinely performed by employees where allowed by program rules. Allowable contract labor costs are defined in §20.103(b)(2)(C) of this title (relating to Specifications for Allowable and Unallowable Costs).

(3)

Mileage reimbursement paid to the attendant for the use of his or her personal vehicle and which are not subject to payroll taxes are considered compensation for this cost center.

(d)

Rate year. The rate year begins on the first day of September and ends on the last day of August of the following year.

(e)

Open enrollment. Open enrollment begins on the first day of July and ends on the last day of that same July preceding the rate year for which payments are being determined.

(f)

Enrollment contract amendment. All contracted providers must submit an enrollment contract amendment during the open enrollment period. On the enrollment contract amendment the provider must specify for each contract his desire to participate or his desire not to participate. The participating provider must specify for each program if he wishes to have all participating contracts be considered as a group or individually for purposes related to the attendant compensation rate enhancement. The provider also must submit with the contract amendment all required documentation to the Texas Department of Human Services (DHS) in a manner specified by DHS. DHS will place on vendor hold providers failing to submit an acceptable enrollment contract amendment by the end of the open enrollment period until DHS receives and processes an acceptable enrollment contract amendment.

(g)

New contracts. For the purposes of this section, for each rate year a new contract is defined as a contract delivering its first day of service to a DHS client on or after the first day of the open enrollment period, as defined in subsection (e) of this section, for that rate year. Contracts that underwent a contract assignment are not considered new contracts. New contractors who must complete the enrollment contract amendment specified in subsection (f) of this section within 30 days of notification by DHS. DHS will place on vendor hold contracted providers failing to submit an acceptable enrollment contract amendment within 30 days of notification until DHS receives and processes an acceptable enrollment contract amendment. Based on the enrollment contract amendment information received, the contracted provider's attendant compensation rate will be adjusted effective on the sixty-first day of the contract with DHS. New facilities will receive the attendant compensation rate as specified in subsection (l) of this section for the first 60 days of their contract with DHS.

(h)

Attendant Compensation Report submittal requirements. Attendant Compensation Reports must be submitted by participating contracted providers as follows.

(1)

Annual report. Participating contracted providers will provide DHS, in a method specified by DHS, an annual Attendant Compensation Report reflecting the activities of the provider while delivering contracted services from the first day of the rate year through the last day of the rate year. This report must be submitted for each participating contract if the provider requested participation individually for each contract, or if the provider requested participation as a group the report must be submitted as a single aggregate report covering all participating contracts within one program of the provider. The aggregate report must include terminated, excluded from participation, new and contract assignment contracts, as defined in subparagraphs (A)-(E) of this paragraph, which were part of the group for any portion of the rate year. This report will be used as the basis for determining compliance with the spending requirements and recoupment amounts as described in subsection (s) of this section. Contracted providers failing to submit an acceptable annual Attendant Compensation Report within 30 days of the end of the rate year will be placed on vendor hold until such time as an acceptable report is received and processed by DHS. Contracted providers participating for less than a full year must provide attendant compensation reports as follows.

(A)

A participating provider whose contract is terminated either voluntarily or involuntarily before the end of the rate year must submit an Attendant Compensation Report within 30 days after the date recognized by DHS as the contract termination date, covering the period from the beginning of the rate year to the date recognized by DHS as the contract termination date. This report will be used as the basis for determining recoupment as described in subsection (s) of this section.

(B)

In cases where a participating provider changes ownership through a contract assignment from one legal entity to another legal entity, the owner prior to the change of ownership must submit an Attendant Compensation Report within 30 days from the date of the contract assignment as determined by DHS, covering the period from the beginning of the rate year to the effective date of the contract assignment as determined by DHS. The owner after the change of ownership must submit an Attendant Compensation report within 30 days of the end of the rate year, covering the period from the effective date of the contract assignment as determined by DHS to the end of the rate year. This report will be used as the basis for determining recoupment as described in subsection (s) of this section.

(C)

A participating provider who is excluded from participation as per subsection (u) of this section must submit an Attendant Compensation Report within 30 days from the date of notification of the exclusion, covering the period from the beginning of the rate year to the date of exclusion as determined by DHS. DHS will use this report as the basis for determining recoupment as described in subsection (s) of this section.

(D)

A participating provider who voluntarily withdraws from participation as per subsection (x) of this section must submit an Attendant Compensation Report within 30 days from the date of withdrawal as determined by DHS, covering the period from the beginning of the rate year through the date of withdrawal as determined by DHS. DHS will use this report as the basis for determining recoupment as described in subsection (s) of this section.

(E)

A participating provider who is a new contract as per subsection (g) of this section must submit an Attendant Compensation Report within 30 days of the end of the rate year, covering the period from the sixty-first day of the contract as determined by DHS through the end of the rate year.

(2)

Six-month report. Participating contracted providers will provide DHS, in a method specified by DHS, a six-month Attendant Compensation Report reflecting the activities of the provider while delivering contracted services from the first day of the rate year through the last day of February of the rate year. DHS will place on vendor hold contracted providers failing to submit an acceptable six-month Attendant Compensation Report within 30 days of the last day of February of the rate year until DHS receives and processes an acceptable report. The report must be submitted for each participating contract if the provider requested participation individually for each contract; or, if the provider requested participation as a group, the report must be submitted as a single aggregate report covering all participating contracts within one program of the provider. Participating providers will use this six-month report to assist them in determining their level of compliance with the spending requirements and to take any appropriate action necessary to come into compliance with the spending requirements. The provider is responsible for the management of attendant compensation expenditures in compliance with the spending requirements stated in subsection (s) of this section.

(3)

Other reports. DHS may require other reports from all contracts as needed.

(4)

Vendor hold. DHS will place on hold the vendor payments for any contractor who does not submit an Attendant Compensation Report completed in accordance with all applicable rules and instructions by the due dates described in this subsection. This vendor hold will remain in effect until an acceptable Attendant Compensation Report is received by DHS.

(i)

Attendant Compensation Report contents. Each Attendant Compensation Report will include the following information:

(1)

attendant hours worked for attendants as defined in subsection (b) of this section for the reporting period;

(2)

attendant compensation cost center costs for attendants as defined in subsection (b) of this section for the reporting period;

(3)

total units of service accrued during the reporting period; and

(4)

other information determined necessary by DHS.

(j)

Completion of compensation reports. All Attendant Compensation Reports must be completed in accordance with the provisions of §§20.102 - 20.105 of this title (relating to General Principles of Allowable and Unallowable Costs, Specifications for Allowable and Unallowable Costs, Revenues, and General Reporting and Documentation Requirements, Methods, and Procedures) and may be reviewed or audited in accordance with §20.106 of this title (relating to Basic Objectives and Criteria for Audit and Desk Review of Cost Reports).

(k)

Enrollment. Providers choosing to participate in the attendant compensation rate enhancement must submit to DHS a signed enrollment contract amendment as described in subsection (f) of this section. Participation is determined separately for each program specified in subsection (a) of this section. Participation will remain in effect, subject to availability of funds, until the provider notifies DHS, in accordance with subsection (x) of this section, that it no longer wishes to participate or until DHS excludes the contract from participation for reasons outlined in subsection (u) of this section. Contracts voluntarily withdrawing from participation will have their participation end effective with the date of withdrawal as determined by DHS. Contracts excluded from participation will have their participation end effective on the date determined by DHS.

(l)

Determination of attendant compensation rate component for participating contracts. For each of the programs identified in subsection (a) of this section DHS will calculate an attendant compensation rate component for participating contracts from subsection (k) of this section and for the first 60 days of a new contract from subsection (g) of this section as follows.

(1)

Determine for each contract included in the cost report data base used in the determination of rates in effect on September 1, 1999, the attendant compensation cost center from subsection (c) of this section.

(2)

Adjust the cost center data from paragraph (1) of this subsection, as specified in §20.108 of this title (relating to Determination of Inflation Indices), to inflate the costs to the prospective rate year.

(3)

For each contract included in the cost report data base used in the determination of rates in effect on September 1, 1999, divide the result from paragraph (2) of this subsection by the units of service and multiply the result by 1.044 for all programs in subsection (a) of this section except for RC and AL/RC which are multiplied by 1.07. The result is the attendant compensation rate component for participating contracts and the first 60 days of new contracts.

(4)

The cost base from paragraph (1) of this subsection used in determining the attendant compensation rate component will not change over time, except for adjustments for inflation from paragraph (2) of this subsection. DHS may recommend adjustments to the rates in accordance with §20.109 of this title (relating to Adjusting Reimbursement When New Legislation, Regulations, or Economic Factors Affect Costs).

(m)

Determination of attendant compensation rate component for nonparticipating contracts. For each of the programs identified in subsection (a) of this section DHS will calculate an attendant compensation rate component for nonparticipating contracts as follows.

(1)

Determine for each contract included in the cost report data base used in determination of rates in effect on September 1, 1999, the attendant compensation cost center from subsection (c) of this section.

(2)

Adjust the cost center data from paragraph (1) of this subsection in order to account for inflation utilizing the inflation factors used in the determination of the September 1, 1999 rates.

(3)

For each contract included in the cost report data base used in determination of rates in effect on September 1, 1999, divide the result from paragraph (2) of this subsection by the units of service and multiply the result by 1.044 for all programs in subsection (a) of this section except for RC and AL/RC which is multiplied by 1.07. The result is the attendant compensation rate component for nonparticipating contracts.

(4)

The attendant compensation rate component will remain constant over time, except for adjustments necessitated by increases in the minimum wage. In such cases, adjustments to the nonparticipating rates are limited to ensuring that these rates are adequate to cover mandated minimum wage levels.

(n)

Determination of attendant compensation rate enhancements. DHS will determine attendant compensation rate enhancement increments associated with each enhanced attendant compensation level. The attendant compensation rate enhancement increments will be determined by using data from sources such as cost reports, surveys, and/or other relevant sources. The attendant compensation rate enhancement increments will be determined by taking into consideration quality of care, labor market conditions, economic factors, and budget constraints. The attendant compensation rate enhancement increments will be determined on a per-unit-of-service basis applicable to each program or service.

(o)

Enhanced attendant compensation. Participating contracts desiring to provide attendant compensation above the level included in subsection (l) of this section may request attendant compensation increments from an array of enhanced attendant compensation options and associated add-on payments determined in subsection (n) of this section during open enrollment.

(p)

Granting additional attendant compensation rate enhancement increments. DHS divides all requests for attendant compensation rate enhancement increments into two groups: pre-existing rate enhancement increments which providers requested to carry over from the prior year and newly requested rate enhancement increments. Newly requested rate enhancement increments may be requested from providers that were nonparticipants in the prior year or by providers which were participants during the prior year desiring to be granted additional rate enhancement increments. Using the process described herein, DHS first determines the distribution of carry-over rate enhancement increments. If funds are available after the distribution of carry-over rate enhancement increments, DHS determines the distribution of newly requested rate enhancement increments as follows:

(1)

DHS determines projected units of service for contracts requesting each enhancement increment and multiplies this number by the enhancement rate add-on amount associated with that enhancement increment as determined in subsection (n) of this section.

(2)

DHS compares the sum of the products from paragraph (1) of this subsection to available funds.

(A)

If the product is less than or equal to available funds, all requested enhancements are granted.

(B)

If the product is greater than available funds, enhancements are granted in a proportional manner. Based upon an examination of existing compensation levels and compensation needs, DHS may grant certain enhancement options priority for proportional distribution.

(q)

Notification of granting of enhancements. Participating contracts are notified, in a manner determined by DHS, as to the disposition of their request for additional attendant compensation rate enhancement increments.

(r)

Total attendant compensation rate for participating contracts. Each participating contract will receive an attendant compensation rate equal to the attendant compensation rate component for participating contracts from subsection (l) of this section, plus any additional attendant compensation rate enhancement payments granted to the contract.

(s)

Spending requirements for participating contracts. DHS will determine from the Attendant Compensation Report, as specified in subsection (h) of this section, the amount of attendant compensation spending per unit of service delivered. The providers' compliance with the spending requirement is determined based on the total attendant compensation spending as reported on the Attendant Compensation Report for each participating contract if the provider requested participation individually for each contract. If the provider specified that he wished to have all participating contracts be considered as a group for purposes related to the attendant compensation rate enhancement, as specified in subsection (f) of this section, compliance with the spending requirement is based on the total attendant compensation as reported on the single aggregate attendant compensation report described in subsection (h) of this section. Compliance with the spending requirement is determined separately for each program specified in subsection (a) of this section. DHS will calculate recoupment, if any, as follows.

(1)

The attendant compensation spending per unit of service will be multiplied by 1.07 to determine the adjusted attendant compensation per unit of service.

(2)

The adjusted attendant compensation per unit of service from paragraph (1) of this subsection will be subtracted from the accrued attendant compensation revenue to determine the amount to be recouped by DHS. If the adjusted attendant compensation per unit of service is greater than or equal to the accrued attendant compensation revenue per unit of service, there is no recoupment.

(3)

The amount paid for attendant compensation per unit of service after adjustments for recoupment must not be less than the amount determined in subsection (m) of this section.

(t)

Notification of recoupment. Providers will be notified in a manner specified by DHS within 90 days of the due date of their annual Attendant Compensation Report as described in subsection (h)(1) of this section or within 90 days of the date the report is submitted, whichever is later, of the amount to be repaid to DHS. If a subsequent review or audit results in audit adjustments to the annual Attendant Compensation Report that changes the amount to be repaid to DHS, the provider will be notified in writing of the adjustments and the adjusted amount to be repaid to DHS. DHS will recoup any amount owed from a provider's vendor payment(s) following the date of the notification letter.

(u)

Exclusion from participation. If the attendant compensation report described in subsection (h)(1) of this section indicates that the participating provider did not spend 90% of the accrued total attendant compensation rate described in subsection (r) of this section on attendant compensation spending as determined from subsection (s) of this section, DHS will notify the provider of the noncompliance. If the subsequent six-month compensation report from subsection (h)(2) of this section indicates that the provider has not spent 90% of the attendant compensation revenue on attendant compensation spending, the contract will be excluded from participation in the attendant rate enhancement effective immediately upon notice of failure to meet the spending requirement. The contract will be excluded from participation in the attendant compensation rate enhancement and will remain a nonparticipant for the remainder of the rate year plus an additional rate year.

(v)

Contract terminations.

(1)

For terminating participants who are not part of a group of participating contracts as defined in subsection (f) of this section, DHS will place a vendor hold on the payments of the contracted provider until DHS receives an acceptable Attendant Compensation Report, as specified in subsection (h)(1)(A) of this section, and funds identified for recoupment from subsection (s) of this section are repaid to DHS. DHS will recoup any amount owed from the provider's vendor payments that are being held. In cases where funds identified for recoupment cannot be repaid by the terminating provider's last vendor payment, the responsible entity from subsection (cc) of this section will be jointly and severally liable for any additional payment due to DHS. Failure to repay the amount due or submit an acceptable payment plan within 60 days of notification will result in placement of a vendor hold on all DHS contracts controlled by the responsible entity and will bar the responsible entity from enacting new contracts with DHS until repayment is made in full.

(2)

For terminating participants that are a part of a group of participating contracts in a program, the Attendant Compensation Report required in subsection (h)(1)(A) of this section will be used, as specified in subsection (s) of this section, to determine compliance with the spending requirements.

(w)

Contract assignments. The following applies to contract assignments.

(1)

Participation in the attendant compensation rate enhancement confers to the provider or legal entity accepting the contract assignment.

(2)

When the contract assignment is a change only in the organizational structure or name of the legal entity, the provider or legal entity accepting the contract assignment is responsible for the reporting requirements in subsection (h) of this section and for any recoupment amount owed to DHS for the entire rate year identified, even if part of the rate year was under the responsibility of the previous legal entity.

(3)

When the contract assignment is an ownership change from one legal entity to a different legal entity and the prior legal entity has no other remaining active participating contracts in a program:

(A)

DHS will place a vendor hold on the payments of the existing contracted provider until DHS receives an acceptable Attendant Compensation Report specified in subsection (h)(1)(B) of this section and until funds identified for recoupment from subsection (s) of this section are repaid to DHS. DHS will recoup any amount owed from the provider's vendor payments that are being held.

(B)

In cases where funds identified for recoupment cannot be repaid by the existing contracted provider's vendor payments that are being held, the responsible entity from subsection (cc) of this section will be jointly and severally liable for any additional payment due to DHS. Failure to repay the amount due or submit an acceptable payment plan within 60 days of notification will result in placement of a vendor hold on all DHS contracts controlled by the responsible entity and will bar the responsible entity from enacting new contracts with DHS until repayment is made in full.

(4)

When the contract assignment is an ownership change from one legal entity to a different legal entity and the contract is a part of a group of participating contracts in a program, DHS will use the Attendant Compensation Report, which is required in subsection (h)(1)(B) of this section, as specified in subsection (s) of this section to determine compliance with the spending requirement.

(x)

Voluntary withdrawal. Participating contracts wishing to withdraw from the attendant compensation rate enhancement must notify DHS in writing by certified mail. Contracts voluntarily withdrawing must remain nonparticipants for the remainder of the rate year and are excluded from participation the following rate ear.

(y)

Adjusting attendant compensation requirements. Providers that determine that they will not be able to meet their attendant compensation requirements may request a reduction to their attendant compensation requirements and associated enhancement payment. These requests will be effective the first of the month following 30 days from the receipt of the request.

(z)

All other rate components. All other rate components will continue to be calculated as specified in the program-specific reimbursement methodology and will be uniform for all providers.

(aa)

Failure to document spending. Undocumented attendant compensation expenses will be disallowed and will not be used in the determination of the attendant compensation spending per unit of service in subsection (s) of this section.

(bb)

Appeals. Subject matter of informal reviews and formal appeals is limited as per §20.110 of this title (relating to Informal Reviews and Formal Appeals).

(cc)

Responsible entities. The contracted provider, owner, or legal entity which received the attendant compensation rate enhancement is responsible for the repayment of the recoupment amount.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 17, 2000.

TRD-200002006

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 30, 2000

For further information, please call: (512) 438-3108


Chapter 46. LICENSED PERSONAL CARE FACILITIES CONTRACTING WITH THE TEXAS DEPARTMENT OF HUMAN SERVICES TO PROVIDE RESIDENTIAL CARE SERVICES

Subchapter G. SUPPORT DOCUMENTS

40 TAC §46.7002

The Texas Department of Human Services (DHS) proposes an amendment to §46.7002, concerning reimbursement methodology for residential care: 1997 and subsequent cost reports, in its Licensed Personal Care Facilities Contracting with the Texas Department of Human Services to Provide Residential Care Services chapter.

The purpose of the amendment is to implement DHS's appropriations rider 37 regarding community care programs passed by the 76th legislature. The proposal establishes procedures for providers to obtain additional funds for increased compensation to attendants in select community care programs (Community Based Alternatives Waiver, Community Living Assistance and Support Services, Primary Home Care, Day Activity and Health Services, Deaf-Blind Multiple Disabilities Waiver, and Residential Care). Providers receiving the additional funds must demonstrate compliance with spending the increased funds on attendant compensation. If a participating provider's allowable attendant compensation times 1.07 is less than the revenue accrued the difference will be recouped by DHS. Providers who choose not to participate will have their total direct care staff rate increase each year limited to adjustments necessitated by increases in the minimum wage. The proposal modifies the cost areas of these programs to separate the new attendant compensation cost area from other cost areas. Changes to the Day Activity and Health Services, Primary Home Care, and Residential Care programs are proposed to combine some of the cost areas.

The department is simultaneously proposing related policy in Chapters 20, 47, and 98, along with the Texas Health and Human Services Chapter 355, in this issue of the Texas Register .

Eric M. Bost, commissioner, has determined that for the first five-year period the proposed section will be in effect there will be fiscal implications for state government as a result of enforcing or administering the section. The effect on state government for the first five-year period the section will be in effect is an estimated additional cost of $10,400,000 in fiscal year (FY) 2001; $10,900,000 in FY 2002; $11,500,000 in FY 2003; $12,000,000 in FY 2004; and $12,600,000 in FY 2005. There will be no fiscal implications for local government as a result of enforcing or administering the section.

Mr. Bost also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be a mechanism for increasing compensation to attendants in certain community care programs. There will be no adverse economic effect on large, small, or micro businesses as a result of enforcing or administering the section, because no changes in practice are required of any businesses. The proposal will provide some additional funding for providers who choose to increase the compensation paid to attendants in their programs. There is no anticipated economic cost to persons who are required to comply with the proposed section.

Questions about the content of this proposal may be directed to Carolyn Pratt at (512) 438-4057 in DHS's Rate Analysis Division. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-179, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

The department will hold a public hearing on the proposal on Monday, April 17, 2000, at 1:30 in the John H. Winters Building Public Hearing Room, first floor, East Tower, 701 West 51st Street, Austin.

The amendment is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The amendment implements the Human Resources Code, §§22.001 - 22.030 and §§32.001 - 32.042.

§46.7002. Reimbursement Methodology for Residential Care[ : 1997 and Subsequent Cost Reports ].

(a)-(b)

(No change.)

(c)

Reimbursement determination.

(1)

(No change.)

(2)

Residential care reimbursement. DHS determines reimbursement for residential care as follows.

(A)

DHS's cost determination process recasts reported allowable expense data in a consistent manner to determine per diem costs. Reported allowable expenses are combined into four [ seven ] cost areas:

(i)

attendant;

[ (i)

direct care;]

(ii)

other direct care;

[ (ii)

food;]

[ (iii)

meal preparation;]

[ (iv)

activities;]

[ (v)

transportation;]

(iii)

[ (vi) ] facility; and

(iv)

[ (vii) ] administration and transportation .

(B)-(D)

(No change.)

(E)

The attendant cost area from subsection (c)(2)(A)(i) of this section will be calculated as specified in §20.112 of this title (relating to Attendant Compensation Rate Enhancement).

(F)

The following applies to the cost areas from subsection (c)(2)(A)(ii)-(iv) of this section:

(i)

[ (E) ] Each provider's total reported allowable costs, excluding depreciation and mortgage interest, are projected from the historical cost-reporting period to the prospective reimbursement period as described in §20.108 of this title (relating to Determination of Inflation Indices). The prospective reimbursement period is the period of time that the reimbursement is expected to be in effect.

(ii)

[ (F) ] Cost area per diem expenses are calculated by dividing total reported allowable costs for each cost area by the total days of service. DHS rank orders cost area per diem expenses from low to high to produce projected per diem expense arrays.

(iii)

[ (G) ] DHS determines reimbursement by selecting from each cost area the median day of service and the corresponding per diem expense times 1.07. The resulting cost area amounts are totaled to determine the per diem reimbursement.

(3)

(No change.)

(d)-(g)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 17, 2000.

TRD-200002007

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 30, 2000

For further information, please call: (512) 438-3108


Chapter 47. PRIMARY HOME CARE

Subchapter E. SUPPORT DOCUMENTS

40 TAC §47.5902

The Texas Department of Human Services (DHS) proposes an amendment to §47.5902, concerning reimbursement methodology for Primary Home Care and Family Care Services: 1997 and subsequent cost reports, in its Primary Home Care chapter.

The purpose of the amendment is to implement DHS's appropriations rider 37 regarding community care programs passed by the 76th legislature. The proposal establishes procedures for providers to obtain additional funds for increased compensation to attendants in select community care programs (Community Based Alternatives Waiver, Community Living Assistance and Support Services, Primary Home Care, Day Activity and Health Services, Deaf-Blind Multiple Disabilities Waiver, and Residential Care). Providers receiving the additional funds must demonstrate compliance with spending the increased funds on attendant compensation. If a participating provider's allowable attendant compensation times 1.07 is less than the revenue accrued the difference will be recouped by DHS. Providers who choose not to participate will have their total direct care staff rate increase each year limited to adjustments necessitated by increases in the minimum wage. The proposal modifies the cost areas of these programs to separate the new attendant compensation cost area from other cost areas. Changes to the Day Activity and Health Services, Primary Home Care, and Residential Care programs are proposed to combine some of the cost areas.

The department is simultaneously proposing related policy in Chapters 20, 46, and 98, along with the Texas Health and Human Services Chapter 355, in this issue of the Texas Register .

Eric M. Bost, commissioner, has determined that for the first five-year period the proposed section will be in effect there will be fiscal implications for state government as a result of enforcing or administering the section. The effect on state government for the first five-year period the section will be in effect is an estimated additional cost of $10,400,000 in fiscal year (FY) 2001; $10,900,000 in FY 2002; $11,500,000 in FY 2003; $12,000,000 in FY 2004; and $12,600,000 in FY 2005. There will be no fiscal implications for local government as a result of enforcing or administering the section.

Mr. Bost also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be a mechanism for increasing compensation to attendants in certain community care programs. There will be no adverse economic effect on large, small, or micro businesses as a result of enforcing or administering the section, because no changes in practice are required of any businesses. The proposal will provide some additional funding for providers who choose to increase the compensation paid to attendants in their programs. There is no anticipated economic cost to persons who are required to comply with the proposed section.

Questions about the content of this proposal may be directed to Carolyn Pratt at (512) 438-4057 in DHS's Rate Analysis Division. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-179, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

The department will hold a public hearing on the proposal on Monday, April 17, 2000, at 1:30 in the John H. Winters Building Public Hearing Room, first floor, East Tower, 701 West 51st Street, Austin.

The amendment is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The amendment implements the Human Resources Code, §§22.001 - 22.030 and §§32.001 - 32.042.

§47.5902. Reimbursement Methodology for Primary Home Care and Family Care Services[ : 1997 and Subsequent Cost Reports ].

(a)-(b)

(No change.)

(c)

Reimbursement determination. DHS determines reimbursement in the following manner.

(1)

Cost determination by cost area. DHS combines reported allowable costs for Primary Home Care and Family Care into four [ five ] cost areas, after allocating payroll taxes to each salary line item on the cost report on a pro rata basis based on the portion of that salary line item to the amount of total salary expense and after applying employee benefits directly to the corresponding salary line item.

(A)

Field supervisors cost area. This includes field supervisor's salaries, wages, benefits, and mileage reimbursement expenses.

[ (A)

Field supervisors cost area. This includes field supervisors' salaries, wages, training, and travel expenses. These costs are divided by total hours of service, including total nonpriority and Priority 1 service hours, in order to calculate each provider's field supervisor unit cost.]

(B)

Nonpriority attendants cost area. This includes nonpriority attendants' salaries and wages, benefits, and mileage reimbursement expenses. This cost area is calculated as specified in §20.112 of this title (relating to Attendant Compensation Rate Enhancement).

[ (B)

Nonpriority attendants cost area. This includes nonpriority attendants' salaries and wages, and travel expenses. These costs are divided by total nonpriority hours of service in order to calculate each provider's nonpriority attendant unit cost.]

(C)

Priority 1 attendants cost area. This includes Priority 1 attendants' salaries and wages, benefits, mileage reimbursement, expenses. This cost area is calculated as specified in §20.112 of this title (relating to Attendant Compensation Rate Enhancement).

[ (C)

Administration cost area. This includes administrative salaries and wages, and other administrative expenses. These costs are allocated between nonpriority and priority 1 services. Administration expenses equal to $0.18 per Priority 1 hour of service are allocated to Priority 1. To calculate the administration unit cost the remaining non-allocated administration costs are divided by total nonpriority and Priority 1 hours of service. For nonpriority, the calculated administration unit cost is the nonpriority administration unit cost. For Priority 1, the $0.18 is added to the calculated administration unit cost to determine the Priority 1 administration unit cost.]

(D)

Building, administration and other service cost area. This includes building, building equipment, and operation and maintenance costs; administration costs; and other direct service costs. Administration expenses equal to $0.18 per Priority 1 unit of service are allocated to Priority 1. The administration costs remaining after this allocation are summed with the facility and the other service costs.

[ (D)

Facility cost area. This includes building and equipment expenses, and operation and maintenance expenses. These costs are divided by total hours of service, including nonpriority services and Priority 1 services in order to calculate each provider's facility unit cost.]

[ (E)

Priority 1 attendants cost area. This includes Priority 1 attendants' salaries and wages, and travel expenses. These costs are divided by total Priority 1 hours of service in order to calculate each provider's Priority 1 attendant unit cost.]

(2)

Recommended reimbursement by cost area. For the cost areas described in paragraph (1)(A) and (D) of this subsection, the following is calculated:

[ (2) ]

[ Projected costs. DHS projects allowable expenses, excluding depreciation and mortgage interest, per hour of service from each provider agency's reporting period to the next ensuing reimbursement period. DHS determines reasonable and appropriate economic adjusters as described in §20.108 of this title (relating to Determination of Inflation Indices) to calculate the projected expenses. For providers reporting traditional workers' compensation insurance (WCI) policy premium costs, their reported workers' compensation costs are inflated by applying the WCI index as calculated in §20.108(c)(2) of this title (relating to Determination of Inflation Indices), plus additional inflation percentages for a risk pool surcharge and for premium differential and modifiers associated with the home health industry. DHS also adjusts reimbursement where new legislation, regulations, or economic factors affect costs as specified in §20.109 of this title (relating to Adjusting Reimbursement When New Legislation, Regulations, or Economic Factors Affect Costs). Depreciation and mortgage interest expenses are not projected. ]

(A)

Projected costs. DHS projects allowable expenses, excluding depreciation and mortgage interest, per unit of service from each provider agency's reporting period to the next ensuing reimbursement period. DHS determines reasonable and appropriate economic adjusters as described in §20.108 of this title (relating to Determination of Inflation Indicies) to calculate the projected expenses. DHS also adjusts reimbursement where new legislation, regulations, or economic factors affect costs as specified in §20.109 of this title (relating to Adjusting Reimbursement When New Legislation, Regulations, or Economic Factors Affect Costs).

(B)

Projected cost per unit of service. To determine the projected cost per unit of service for each provider agency, the total projected allowable costs for each cost area are divided by total units of service, including nonpriority services and Priority 1 services, in order to calculate the projected cost per unit of service for each cost area.

(C)

Projected cost arrays. DHS rank orders from low to high all provider agencies' projected allowable costs per unit of service and each provider agencies' corresponding units of service for each cost area.

[ (3) ]

[ Projected cost arrays. To calculate the reimbursement per hour of service, DHS rank orders from low to high all provider agencies' projected allowable costs per hour of service in each cost area and all provider agencies' projected total costs. ]

(D)

[ (4) ] Recommended reimbursement for each cost area component. The hours of service used to calculate each cost area component for each provider agency are summed until the median hour of service is reached. The corresponding projected expense is the weighted median cost component. The cost component for each cost area is multiplied by 1.044 to calculate the recommended reimbursement for each cost area component.

(3)

[ (5) ] Total recommended reimbursement.

(A)

For nonpriority clients. DHS determines the recommended reimbursement by summing the recommended reimbursement described in paragraph (2) [ (4) ] of this subsection and the cost area component from paragraph (1)(B) of this subsection [ for the cost area components described in paragraph (1)(A)-(D) of this subsection ].

(B)

For Priority 1 clients. DHS determines the recommended reimbursement by summing the recommended reimbursement described in paragraph (2) [ (4) ] of this subsection and the cost area component from paragraph (1)(C) of this subsection [ for the cost area component described in paragraph 1(A) and (C)-(E) of this subsection ].

(4)

[ (6) ] Reimbursement determination authority. The reimbursement determination authority is specified in §20.101 of this title (relating to Introduction).

(5)

[ (7) ] Desk reviews and field audits of cost reports. DHS performs desk reviews or field audits on all contracted providers. The frequency and nature of the field audits are determined by DHS to ensure the fiscal integrity of the program. Desk reviews and field audits will be conducted in accordance with §20.106 of this title (relating to Basic Objectives and Criteria for Audit and Desk Review of Cost Reports), and providers will be notified of the results of a desk review or an audit in accordance with §20.107 of this title (relating to Notification of Exclusions and Adjustments). Providers may request an informal review and, if necessary, an administrative hearing to dispute an action taken by DHS under §20.110 of this title (relating to Informal Reviews and Formal Appeals).

(d)-(e)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 17, 2000.

TRD-200002008

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 30, 2000

For further information, please call: (512) 438-3108


Chapter 98. ADULT DAY CARE AND DAY ACTIVITY AND HEALTH SERVICES REQUIREMENTS

Subchapter I. REIMBURSEMENT METHODOLOGY FOR DAY ACTIVITY AND HEALTH SERVICES (DAHS)

40 TAC §98.6907

The Texas Department of Human Services (DHS) proposes an amendment to §98.6907, concerning reimbursement methodology for residential care: 1997 and subsequent cost reports, in its Adult Day Care and Day Activity and Health Services Requirements chapter.

The purpose of the amendment is to implement DHS's appropriations rider 37 regarding community care programs passed by the 76th legislature. The proposal establishes procedures for providers to obtain additional funds for increased compensation to attendants in select community care programs (Community Based Alternatives Waiver, Community Living Assistance and Support Services, Primary Home Care, Day Activity and Health Services, Deaf-Blind Multiple Disabilities Waiver, and Residential Care). Providers receiving the additional funds must demonstrate compliance with spending the increased funds on attendant compensation. If a participating provider's allowable attendant compensation times 1.07 is less than the revenue accrued the difference will be recouped by DHS. Providers who choose not to participate will have their total direct care staff rate increase each year limited to adjustments necessitated by increases in the minimum wage. The proposal modifies the cost areas of these programs to separate the new attendant compensation cost area from other cost areas. Changes to the Day Activity and Health Services, Primary Home Care, and Residential Care programs are proposed to combine some of the cost areas.

The department is simultaneously proposing related policy in Chapters 20, 46, and 47, along with the Texas Health and Human Services Chapter 355, in this issue of the Texas Register .

Eric M. Bost, commissioner, has determined that for the first five-year period the proposed section will be in effect there will be fiscal implications for state government as a result of enforcing or administering the section. The effect on state government for the first five-year period the section will be in effect is an estimated additional cost of $10,400,000 in fiscal year (FY) 2001; $10,900,000 in FY 2002; $11,500,000 in FY 2003; $12,000,000 in FY 2004; and $12,600,000 in FY 2005. There will be no fiscal implications for local government as a result of enforcing or administering the section.

Mr. Bost also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be a mechanism for increasing compensation to attendants in certain community care programs. There will be no adverse economic effect on large, small, or micro businesses as a result of enforcing or administering the section, because no changes in practice are required of any businesses. The proposal will provide some additional funding for providers who choose to increase the compensation paid to attendants in their programs. There is no anticipated economic cost to persons who are required to comply with the proposed section.

Questions about the content of this proposal may be directed to Carolyn Pratt at (512) 438-4057 in DHS's Rate Analysis Division. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-179, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

The department will hold a public hearing on the proposal on Monday, April 17, 2000, at 1:30 in the John H. Winters Building Public Hearing Room, first floor, East Tower, 701 West 51st Street, Austin.

The amendment is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs; and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The amendment implements the Human Resources Code, §§22.001 - 22.030 and §§32.001 - 32.042.

§98.6907. Reimbursement Methodology for Day Activity and Health Services[ : 1997 and Subsequent Cost Reports ].

(a)-(e)

(No change.)

(f)

Reimbursement determination. DHS determines reimbursement in the following manner.

(1)-(3)

(No change.)

(4)

DHS staff combine allowable reported costs into the following four [ six ] cost areas:

(A)

Attendant cost area. This cost area is calculated as specified in §20.112 of this title (relating to Attendant Compensation Rate Enhancement).

[ (A)

Salaries and benefits cost area includes the salaries, wages, payroll taxes, and benefits of Day Activity and Health Services direct service personnel and drivers.]

(B)

Other direct care costs. This cost area includes other direct care staff; food and food service costs; activity costs; and other direct service costs.

[ (B)

Transportation cost area includes the rental or lease of transportation equipment and operating costs. The driver's salary is not included in this cost area.]

(C)

Facility cost area. This cost area includes building, maintenance staff, and utility costs.

[ (C)

Food and food service cost area includes the cost of meals, related supplies, dieticians, and food servers.]

(D)

Administration and transportation cost area. This cost area includes transportation, administrative staff, and other administrative costs.

[ (D)

Building, equipment, and capital cost area includes all building operation expenses.]

[ (E)

Utility cost area includes all water, electric, gas, and telephone expenses.]

[ (F)

Direct programmatic expenses cost area includes the costs of medical and activity supplies, and administration, including administrative staff.]

(5)

For the cost areas described in paragraph (4)(B)-(D) of this subsection, allowable [ Allowable ] costs are totaled by cost area and then divided by the total units of service for the reporting period to determine the cost per unit of service. DHS staff rank from low to high all provider agencies' projected costs per unit of service in each cost area. The median projected unit of service cost from each cost area is then determined. Those median projected unit of service costs from each cost area are totaled. That resulting total is multiplied by 1.044 and becomes the recommended reimbursement.

(6)

(No change.)

(g)-(j)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 17, 2000.

TRD-200002009

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: April 30, 2000

For further information, please call: (512) 438-3108


Part 20. TEXAS WORKFORCE COMMISSION

Chapter 809. CHILD CARE AND DEVELOPMENT

The Texas Workforce Commission (Commission) proposes amendments to §§809.12, 809.46, and 809.124 relating to Child Care services.

Purpose: The purpose of the amendments is to remove references to the categorical Child Care Plans that local workforce development boards (Boards) have previously submitted to the Commission, because the Commission is designing an integrated planning process to consolidate the separate plans relating to child care and workforce training and services into one integrated plan for each local workforce development area (workforce area). The Commission anticipates that the benefits of a more integrated planning process will assist Boards in coordinating and utilizing local funds in a more efficient manner.

Goals: Child Care services are provided to low-income families to create and promote long-term self-sufficiency by enabling parents to work or attend education or training activities. Such services offer affordable, accessible, and quality child care that promotes the physical, social, emotional, and intellectual development and safety of children. Recognizing that parents best understand the needs of their children, these services empower parents to make informed choices regarding child care that best suit the family's needs. The Commission also advocates improvements in the availability, affordability, and quality of child care while supporting health, safety, licensing, and regulatory standards for child care providers. The goal is to coordinate workforce services, to leverage private and public funds at the local level, and to fully integrate child care for low-income families with the network of workforce training and services under the administration of the Boards.

Integrated Plans: To assist the Boards in more fully incorporating and coordinating child care services into a comprehensive one-stop network of services provided to help low-income families as they move toward self-sufficiency by providing child care subsidies to parents to support work, training, or education, the Commission is developing an integrated planning process for Boards that would remove the need for a separate child care plan and replace that separate plan with an integrated workforce training and services plan.

Background: The purpose of the child care rules is to fully integrate child care services for low-income families with the network of workforce training and services under the administration of the Boards. Child care services are subsidized for families seeking to become independent from or who are at risk of becoming dependent on public assistance, while parents are either working or in educational or training activities.

In January 1999, the Commission adopted changes to the former child care rules for implementation by the Boards by September 1, 1999, which allowed the Boards more flexibility in tailoring the design and management of the delivery of child care services to best meet the needs of the residents and employers in the workforce areas. In preparation for implementing the changes set forth in the rules applicable on September 1, 1999, the Boards submitted specific child care plans to the Commission by July 1, 1999. In the child care plans the Boards assessed the need for child care in their individual local workforce development areas, tailored a unique plan for child care service delivery, and described a method for overseeing the delivery of this vital service to ensure families' steady transition to self-sufficiency.

The revisions to the rules in January 1999 incorporated changes necessitated by federal regulations set forth in 45 CFR Parts 98 and 99. The rules provided flexibility for the Boards to fulfill their responsibilities in meeting the needs of parents and children residing in the workforce areas. Prior to the revisions of the rules, the Commission previously set prescribed methods for compliance with federal and state statutes. The changes to the rules enhanced the ability of the Boards to develop policies and procedures for administering child care services that best fit the local needs. For example, the level of state median income for eligibility was changed to match the criteria contained in the federal regulations at 45 CFR Parts 98 and 99, which is an income limit that does not exceed 85% of the state median income for a family of the same size. Boards were able to establish local policies that set an eligible income level as equal to or lower than the 85% level. The Commission encouraged the Boards to set local policies that would use the funds in the most effective manner to assist people who are transitioning off of public assistance or who are at risk of becoming dependent on public assistance.

The enhanced flexibility afforded to the Boards ensures that Board policies maximize the use of funds by tailoring the design and management of the delivery of child care services to meet the specific needs of each workforce area. To assist the Boards in adapting to the increased flexibility provided under state law and rules, the Commission offers continued training and technical assistance to the Board members and staff regarding child care services.

Continuing Board Responsibilities: The Boards will continue to develop and maintain policies and procedures for the design and management of the delivery of child care services that address matters including, but not limited to: parent co-payments, attendance policies, eligibility procedures, service priorities, provider reimbursement rates, and other methods to utilize the funds in a manner that addresses the needs of the workforce area efficiently and effectively. Some methods of developing these policies have included Boards examining the past practices of the Commission, examining recommended best practices, or independently tailoring policies to meet local needs.

Coordinating Planning and Policies. In developing and modifying an integrated plan and local policies for the design and management of the delivery of child care services, the Boards shall seek input from the local entities as indicated in 45 CFR Parts 98 and 99, and particularly §98.14, to coordinate with state, federal, and local child care and early childhood development programs, entities responsible for public health and public education, representatives of local government, and members of the public, such as parents, employers, and providers.

In addition, the Boards are required to design and manage the delivery of child care services subject to the provisions of Texas Government Code, Chapter 2308, as implemented by the Commission through 40 TAC Chapter 801 relating to Local Workforce Development Boards. Boards will continue to ensure access to child care services in their networks of one-stop centers. The Boards may continue to choose to integrate intake and eligibility with the services handled by career center operators or to obtain other contractors. Telephone access at the career centers to intake and eligibility contractors will continue to meet the requirements of Texas Government Code, Chapter 2308.251 et seq. Similarly, child care training may continue to be incorporated within other contractors' activities or separated to be performed by a different contracting entity.

The Commission continues to provide the Boards with maximum flexibility, in accordance with state and federal law and regulations, to design and manage a service mechanism that will assist the greatest number of families in accessing the most affordable, quality child care in each workforce area. In their role as policymakers, the Boards are subject to all the requirements of the Texas Open Meetings Act, thus ensuring that parents, providers, contractors and potential contractors, employers, and the public in general will have the opportunity to participate and comment on proposed child care administrative policies.

Boards will also continue to be required to follow the procedures for making changes to each Board's integrated workforce training and services plan, including the strategic and operational portions consistent with Texas Government Code, Chapter 2308 and 40 TAC Chapter 801 relating to Local Workforce Development Boards.

Randy Townsend, Director of Finance, has determined that for each year of the first five years the amendments will be in effect, the following statements will apply:

There are no additional estimated costs to the state and to local governments expected as a result of enforcing or administering the amendments;

There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the amendments;

There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the amendments;

There are no foreseeable implications relating to costs or revenue of the state or local governments as a result of enforcing or administering the amendments; and

There are no anticipated economic costs to persons required to comply with the amendments.

Mr. Townsend has also determined that there is no anticipated adverse impact on small businesses as a result of enforcing or administering the rules because small businesses are not regulated by or required to do anything by the amendments.

Mark Hughes, Director of Labor Market Information, has determined that there is no significant negative impact upon employment conditions in this state as a result of the proposed amendments.

Jean Mitchell, Director of Workforce and Development, has determined that for each year of the first five years the amendments are in effect, the public benefit anticipated as a result of enforcing the amendments will be to help ensure a more effective use of child care funds to assist Boards in supporting employment, training, and education.

Comments on the proposal may be submitted to Gary Frederick, Texas Workforce Commission Building, 101 East 15th Street, Room 440T, Austin, Texas 78778, (512) 305-9672. Comments may also be submitted via fax to (512) 463-7379 or e-mailed to: Gary.Frederick@twc.state.tx.us. Comments must be received by the Commission within thirty days from the date of the publication in the Texas Register .

Subchapter B. GENERAL MANAGEMENT REQUIREMENTS

40 TAC §809.12

The amendments to the rules are proposed under Texas Labor Code §§301.061 and 302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of the Commission's responsibilities.

The amendments to the rules affect Texas Labor Code, Chapter 302, and Texas Human Resources Code, Chapters 31 and 44.

§809.12.Board Planning and Policies [ and Plans ] for Child Care Services.

(a)

Planning. A Board shall, as part of its integrated workforce training and services plan, develop, amend and modify the plan to incorporate and coordinate the design and management of the delivery of child care services with the delivery of other workforce employment, training and education services identified in Texas Government Code §2308.251 et seq. , as well as other training and services included in the One-Stop Service Delivery Network. The goal is to coordinate workforce training and services, to leverage private and public funds at the local level, and to fully integrate child care for low-income families with the network of workforce training and services under the administration of the Boards. Boards shall design and manage the integrated workforce training and services plan that maximizes the delivery and availability of quality child care services to assist families seeking to become independent from or who are at risk of becoming dependent on public assistance, while parents are either working or participating in educational or training activities in accordance with state and federal statutes and regulations. [ A Board shall develop policies and prepare, as part of its workforce training and services plan (plan) and budget, a plan for the delivery of child care in accordance with Commission rules and guidelines. The child care delivery plan shall include evidence of coordination with federal, state, and local child care and early childhood development programs and representatives of local governments. ]

(b)

Policies. A Board shall develop, adopt, and modify its policies for the design and management of the delivery of child care services in a public process consistent with the methods required for compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551 et seq. A Board shall maintain written copies of the policies and make such policies available to the Commission and the public upon request. A Board shall also submit any modifications, amendments, or new policies to the Commission no later than two weeks after adoption of the policy by the Board. [ A Board shall develop policies for child care consistent with the procedures for board plan amendments contained in §801.3 of this title (relating to Requirements for Submission of Local Workforce Training and Services Plans, Modifications and Amendments) and state and federal statutes and regulations. ]

(c)

Coordinating Planning and Policies. A Board shall coordinate with federal, state and local child care and early development programs and representatives of local governments in developing its integrated plan and its policies for the design and management of the delivery of child care services, and shall maintain written documentation of that coordination. [ A board shall submit additional requirements, which would require amending the Board's plan, as amendments to the Board's plan. ]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 17, 2000.

TRD-200002018

J. Ferris Duhon

Assistant General Counsel

Texas Workforce Commission

Earliest possible date of adoption: April 30, 2000

For further information, please call: (512) 463-8812


Subchapter C. REQUIREMENTS TO PROVIDE CHILD CARE

40 TAC §809.46

The amendments to the rules are proposed under Texas Labor Code §§301.061 and 302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of the Commission's responsibilities.

The amendments to the rules affect Texas Labor Code, Chapter 302, and Texas Human Resources Code, Chapters 31 and 44.

§809.46.Assessing Parent Fees.

(a)

A Board shall assess parent fees to all parents or caretakers based on the family's size and gross monthly income, with the following exceptions:

(1)

Parents or caretakers who receive TANF are assessed no fee.

(2)

Parents or caretakers who receive Supplemental Security Income (SSI) are assessed no fee.

(3)

Parents who participate in the Food Stamp Employment and Training program are assessed no fee. Children of parents or caretakers who receive protective services are assessed no fee unless the Texas Department of Protective and Regulatory Services assesses a fee to a parent.

(b)

In families where the child is the only TANF or SSI recipient, the parent fee is assessed according to subsection (d) of this section.

(c)

Teen parents who live with their parents and who are not covered under exceptions outlined under subsection (a) of this section shall be assessed a parent fee. The parent fee is based solely on the teen parent's income.

(d)

Parent fees for all parents not covered under exceptions outlined under subsection (a) of this section are assessed using the following formulas:

(1)

In areas where the Commission manages child care service delivery contracts, the parent fee shall be 9% of the family's gross monthly income if there is one child receiving Commission paid child care and 11% of the family's gross monthly income if there are two or more children receiving Commission paid child care. For families with 7 or more members, the fee is 65% of the 9% or 11%.

(2)

In areas where the Board directly manages child care service delivery contracts, it is recommended that the parent fee should be no less than 9% and no more than 15% of the family's gross monthly income. The Board shall vary the parent fee based on the number of members in the family and the family's gross monthly income and may also vary the fee based on the number of children the family has in care. The Board shall set the actual fee policy in accordance with the requirements set forth in §809.12 of this chapter (relating to Board Planning and Policies [ and Plans ] for Child Care Services).

(e)

The Board's contractor is not permitted to assess a parent fee that exceeds the cost of care.

(f)

Parents who receive a child care subsidy from other state or federal programs such as the Workforce Investment Act shall pay that amount in addition to the assessed parent fee. The Board's contractor shall request documentation of child care subsidies from the parent.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 17, 2000.

TRD-200002017

J. Ferris Duhon

Assistant General Counsel

Texas Workforce Commission

Earliest possible date of adoption: April 30, 2000

For further information, please call: (512) 463-8812


Subchapter H. CHILDREN OF PARENTS AT RISK OF BECOMING DEPENDENT ON PUBLIC ASSISTANCE

40 TAC §809.124

The amendments to the rules are proposed under Texas Labor Code §§301.061 and 302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of the Commission's responsibilities.

The amendments to the rules affect Texas Labor Code, Chapter 302, and Texas Human Resources Code, Chapters 31 and 44.

§809.124.Children Served by Special Projects.

(a)

Special projects developed in federal and state statutes or regulations may add groups of children eligible to receive child care.

(b)

The eligibility criteria as stated in the statutes or regulations shall control for the special project, unless otherwise indicated by the Commission [ in the Board Planning Guidelines. ]

(c)

Special Projects may include child care provided through match initiatives as described in 45 Code of Federal Regulations Part 98.

(d)

The time limit for receiving child care for children served by special projects may be:

(1)

specifically prescribed by federal or state statutes or regulations according to the particular project;

(2)

otherwise set by the Commission depending on the purpose and goals of the special project; and

(3)

limited to the availability of funds.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 17, 2000.

TRD-200002016

J. Ferris Duhon

Assistant General Counsel

Texas Workforce Commission

Earliest possible date of adoption: April 30, 2000

For further information, please call: (512) 463-8812